Playing it safe with lots of research

Me & My Money Series (Sunday Times) Did she realize that property was actually rising in the last five years, no thanks to a liberal immigration policy? She attributes it to "luck and market timing". Not sure also what she means by "careful upgrades" - in the end all the money from the "profits" are recycled back to purchase higher and higher-priced property. Now she "owns" a $3 million property and I wonder what the size of the loan is......but she's happy because it has "appreciated" by $450,000. Not sure what kind of concept for property these people have - that it will forever keep rising?? First interviewee with no worst bet. Possibly because she has not technically been "investing" at all? Jun 12, 2011 me & my money Playing it safe with lots of research MD of market research firm is a conservative investor and focuses on wealth preservation By Lorna Tan, Senior Correspondent Over the past 12 years, Ms Joan Koh, 37, has risen fairly rapidly through the ranks at global information and measurement firm Nielsen. She started out as a research executive in 1999, and in April last year, she was made managing director of the Singapore office. The firm provides clients with data and insight on consumers and their behaviour by researching what they watch and buy. When it comes to her personal investments, Ms Koh applies the same meticulous approach of doing her own research. It helps that her husband is a banking officer and is therefore familiar with financial products. She considers herself a conservative investor, parking her savings mainly in fixed deposits, bonds, insurance and property. One of the couple's favourite pastimes is visiting showflats, particularly those in the East Coast area. Since 2003, they have upgraded their property three times, using the profits from the sale of each one to finance the next. Ms Koh attributes her preference for 'safe' instruments partly to her upbringing. Her father was a businessman who ran a trading business dealing with electronic equipment and accessories. But he ran into cash-flow difficulties and had to shut down his business twice, once in 1998 and, after restarting it, again in 2004. He had provided well for the family when Ms Koh and her siblings were growing up, but he did not have sufficient savings for his own retirement. She obtained her degree in marketing in 1995 and a Master of Business Administration in 1998 from Griffith University in Queensland, Australia. After obtaining a tourism marketing diploma from Temasek Polytechnic in 1993, she worked as a stewardess with Singapore Airlines for two years, during which she saved the bulk of her salary to pay for her overseas studies. Ms Koh is married to Mr Marcellus Wee, 38, and they have two boys, four-year-old Charles and 10-month-old Louis. Q: Are you a spender or saver? Savings are important, especially for the future of my two young children and for my elderly parents. I save at least 30 per cent of my salary and I follow a strict discipline to achieve this. Q: How much do you charge to your credit cards every month? My average credit card bill is between $2,000 and $3,000 a month. I hold four credit cards but I use only two for the bulk of my expenses. I always pay my credit card bills in full. I make sure that whatever I charge is in line with my target for savings and expenses. Q: What financial planning have you done for yourself? My objective is to exercise financial prudence in planning for my family's future. I invest mostly for the long term and, due to my conservative attitude towards money, I tend to look for potential investments in bonds. About 20 per cent of my savings is invested in corporate bonds such as the 10-year OUE bond, which has an annual coupon rate of 3.6 per cent. Cash is king and I keep it in fixed deposits. For insurance, I have one life plan and one term plan. My life cover is a six-digit figure. I also have an education plan for each of my two boys, as well as medical insurance. The children can have the flexibility to convert some of the life insurance to cash if they choose to after they turn 21. We bought mortgage insurance to cover the home loan as well. I believe in the importance of planning early for retirement and am planning to diversify my portfolio in the next two to three years. Q: Moneywise, what were your growing-up years like? I come from a family of six and I'm the third child. My father was a businessman dealing with radio equipment and accessories and my mother was a homemaker. My father is an amazingly intelligent, capable and determined man. He provided the family with what we needed and wanted. We were totally dependent on him before we started work. We lived in a two-storey, three-bedroom terraced house in Serangoon. He had to close down his business because of cash-flow difficulties, and it taught me to be more financially prudent - the need to be self-sufficient, to save for a rainy day and for retirement. Needless to say, medical insurance is of the utmost importance as I need to take care of medical expenses for my ageing parents. Q: How did you get interested in investing? I was first exposed to investments and started learning the ropes from my husband Marcellus, who works in a bank. Working for Nielsen has also helped to widen my exposure and enhance my understanding of investments. I first started with basic currency trades in 2005 and had a smattering of bond investments. Subsequently, by a mixture of luck and market timing, we bought and sold a few properties in the last five years, which enhanced my interest in property. I focus primarily on wealth preservation and therefore prefer safer income- generating assets. That said, I am also looking to diversify my portfolio to include some elements of capital appreciation over the long term. Q: What property do you own? From our first property in 2003 to the current one, it has been a series of careful upgrades. My husband and I bought our first property - a 1,000 sq ft, two- bedroom condominium unit at Country Park - for $685,000 in 2003. It was sold in 2007 for $758,000. In 2006, we bought a 2,600 sq ft town house in Bedok for about $1.3 million. This was sold for $1.85 million last year, which gave us a profit of 44 per cent. We then bought our current home, a semi-detached in Katong, for about $3 million. Q: What's the most extravagant thing you have bought? A diamond Patek Philippe watch which I bought two years ago for $16,000 as a reward for myself and to commemorate my 10-year anniversary at Nielsen. Q: What's your retirement plan? I strongly believe in the importance of planning early for retirement. The findings from a recent Nielsen study on global ageing trends further affirm my belief. While one in three Singaporeans plans to retire or is already retired before the age of 60, only 14 per cent of the consumers polled admit to being financially ready for retirement. Certainly, I hope that with prudent planning, I will be ready to retire by 55. By then, my husband and I can hopefully travel a lot more and dedicate more time to the church. Q: Home is now... The three-storey semi-detached house in Katong. Q: I drive... A black Mercedes-Benz C-Class, which I bought in 2009 for $150,000. [e-mail] ------------------------------------------------------- WORST AND BEST BETS Q: What has been your worst investment to date? There isn't one yet, as I am risk-averse and make the effort to do a lot of research before I make any investment. Besides, I have a long-term horizon and believe in holding power. I invest with a specific purpose and view and this has not changed. Q: And your best? My current residence - a three-storey, five-bedroom semi-detached house in Katong. Since we bought it last year for about $3 million, it has appreciated 15 per cent. It is a lovely home where my family and I share many memories and spend quality time together, which is priceless. My Value Investing Blog: http://sgmusicwhiz.blogspot.com/ http://sgmusicwhiz.blogspot.com

06-19-2011, 06:42 AM Post: #216

RE: Me & My Money Series (Sunday Times) Jun 19, 2011 Me & My Money She's big on fashion, big on investing Co-owner of plus-size apparel firm is a keen saver, careful spender By Lorna Tan, Senior Correspondent Ms Daphne Chow may be a petite size six but she ensures that plus-size women are not left out in the fashion scene. Sharing the same passion are her sister Wendy, 28, and cousin Candy Chow, 29. Realising that shapely and voluptuous women face difficulties finding suitable apparel for themselves, the three women set up plus-size apparel firm Big On Attitude in 2006, with an initial capital of $5,000. They broke even within six months. Besides selling fashionable attire that comes in big sizes - via the Internet - the trio have taken to designing the clothes as well. In 2006, Ms Chow was a full-time marketing and business development manager at computer gaming firm Precursor which belonged to her then boyfriend, now husband Aaron Aw, 31. In December 2009, she quit her job and has been managing Big On Attitude full time since January last year. The firm has attracted customers from Asia, Europe and the United States. Its latest initiative is supporting a personal image enhancement wellness programme 'Amazing Lifestyles 2011', organised by beauty pageant organiser TK & Sons. The programme is geared towards women who wear UK size 12 and above and comprises grooming and apparel consultancy workshops. It starts later this month. Besides her business, the 32-year-old invests in currencies, unit trusts and insurance plans. She graduated with a double-major degree in marketing and information systems from Curtin University of Technology in Western Australia, in 2000. Before joining Precursor and running her current business, she had work stints at a few Internet firms. She and her husband hope to start a family soon. Meanwhile, she keeps busy with seven rabbits, three guinea pigs and two birds she rescued from near death. Q: Are you a spender or saver? I have always been more of a saver and I am careful with my money as I believe in spending only what I have. I strive to save 30 per cent of my income every month as we plan to start a family in the near future. But I would not hesitate to spend good money on things I feel would be important and valuable to both my family and myself. Q: How much do you charge to your credit cards every month? I have five credit cards but I usually use only one to accumulate redemption points. As a couple, we charge about $1,000 to cards on a monthly basis. I like to keep a close eye on my spending so I avoid using too many cards. I prefer to pay off all my credit card bills monthly without incurring interest. I withdraw about $500 fortnightly. Q: What financial planning have you done for yourself? I have both life and mortgage insurance so I know if anything ever happens to me, my family will be well taken care of. I have an investment-linked insurance plan that invests in commodities, China and Middle East funds. I maintain a certain level of cash liquidity so I have the cash reserves to make financial decisions quickly when needed. I bought into Australian dollars (A$12,000) in 2009 but sold them in January this year, making a profit of $5,000. Aaron and I have $250,000 set aside in a priority banking account and some of it is invested in currency pairs and unit trusts. Q: Money-wise, what were your growing-up years like? I come from a middle-class family of four and I have a younger sister, Wendy. My father was a supervisor in an engineering firm and my mother a housewife. My parents placed a high value on education and my dad instilled in us the importance of saving for a rainy day. They also fostered strong work ethics in us. My dad used to give small rewards whenever we accomplished what we set out to achieve. We moved to Australia when I was 13. From a four-room HDB flat in Clementi, we lived in a four-bedroom single-storey landed property in Perth. As a result of living overseas for a long time, I have cultivated my own set of four Cs to live by that's a little different from the traditional five Cs. They are: commitment, courage, character and curiosity. These beliefs have propelled me into my chosen career path. Q: How did you get interested in investing? My interest in investing was piqued by the very practical realisation that my fixed deposit accounts and savings won't be sufficient to generate enough towards my retirement. Inflation will erode their value over time. While it is great to be cash-rich, I decided to venture further and started small by first purchasing two affordable savings and protection plans from Aviva when I was a new graduate. Besides, it is a disciplined way to save. Q: What property do you own? When I returned to Singapore to look for a job in mid-2000, I bought a three-room HDB flat with my mother in Clementi for $175,000. It is now worth about $350,000. I lived there till I got married in 2008. Since then, the flat has been rented out at $2,000 a month. My husband and I bought a three-bedroom, 1,500 sq ft freehold condominium unit in Pasir Panjang for $1.6 million last year. It is now worth about $2.1 million. We collected the keys last month and will move in soon. We hope to purchase a third property before we are 35 so it can help to supplement our retirement income. Q: What's the most extravagant thing you have bought? I re-ignited my passion for photography recently. In October last year, I purchased a Leica M9 digital camera and a Leica Summilux lens (second-hand) on impulse for about $12,000 before realising I should not have started with such a specialised system. I sold them two months later at around the same price and the replacements are a previous Leica model and a Micro Four Thirds camera for a total cost of more than $4,000. Q: What's your retirement plan? I see myself travelling around the world with my husband when we are retired, visiting wonderful pla-ces we often see on National Geographic and photographing these priceless experiences. We hope to be financially independent by the age of 45, although with children, this may have to be later. I have a deep love of animals and I am currently the vice-president of the House Rabbit Society Singapore (http://www.hrss.net) where I have been a volunteer since 2005. I would definitely like to have greater financial freedom in my golden years to contribute more in areas of animal welfare and wildlife protection and conservation efforts. We aim to have a retirement monthly income of $10,000 to fulfil all of these endeavours. Q: Home is now... A six-bedroom 7,500 sq ft bungalow which belongs to my in-laws off Whitley Road. Q: I drive... I take public transport for now, for both economical reasons and to minimise my carbon footprint. [e-mail] ------------------------------------------------------- WORST AND BEST BETS Q: My worst investment to date... Investing US$30,000 (S$37,200) in a US property market fund with my husband. It was bought just a fortnight before the financial crisis in 2008. Since then, it has fallen to 50 per cent of its original value. As the fund is in US dollars, it is a double blow for us as the US currency has also fallen. We are still holding on to it and hope the fund will recover in the long term. Q: My best investment to date... It is my resale Housing Board flat in Clementi which was bought in mid-2000 for $175,000. It has almost doubled in value since then. I'm currently renting it out at $2,000 per month.